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Gordon Ramey II has filed a federal anti-trust complaint against Comcast due to mandatory rental fees for “cable box” or “set-top-boxes,” which are mandatory to view premium and/or digital cable. The suit alleges that the company’s actions constitute an unlawful tying arrangement resulting in an impermissible restraint of trade.
Due to a monopoly in cable markets and its dominance in the industry, the company’s “sufficiently strong economic power” , cable box competitors have “little motivation” or are “foreclosed” from entering the market, since Comcast which has more than 50% of the cable market.
Ramey’s attorneys allege that the cable provider purchases the boxes from Motorola or Scientific Atlanta “at a fixed and low cost… only to turn around and rent the same boxes to the class (for a hefty profit) with full knowledge that members of the Class have no choice but to pay the rental fees.”
A Comcast spokeman wants to say “Bring it on! We’ll tie this up in the courts for 20-years and out-spend you into the ground. By that time, set-top boxes will be gone and customers will be forced to buy Comcast-branded TV sets”